Home – New Forums Money matters Consulting rates – what to charge Reply To: Consulting rates – what to charge

  • Total posts: 1

As Stellar Scott said – (and how I do it)

Take your salary plus super plus costs and divide by 44 weeks working weeks (52 – 4 annual – 2 sick – 10 public holiday) – this is figure x – what you need to earn on the weeks you work to hit your yearly target.

Take 40 hours a week. Minus 20% for admin and marketing. Minus 10% for quotes = 28 hours. Then assume 80% efficiency if you think you are good. Less if you think you are closer to the average. This gives 23 billable hours a week figure y.

Divide figure x by figure y. This is what u need to bill each working week to hit your target.

I did this for $100k (I only keep 45% of direct billings. Rest pays bills, then the 4 owners divide the profit and pay a divid end) – my aim is for $100k before divid ends.

So 100/44 = 2.2k a week.

I used 90% efficiency so 25 average billable hours.

2200/25 = $88/hr in my pocket /0.45 = $200 charge out rate.

Most important thing is allowing for the days you don’t work, and your costs and work backward to an hourly rate. Lots of people make the mistake of dividing salary by 52 by 40. You will be working 60 hours a week 52 weeks of the year to hit your aim salary.